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Economics MCQs with Explanations

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3001EconomicsMedium

What is called protection of domestic producers by impeding or limiting the importation of foreign goods and services?

AProtectionism

BLocalization

CNational interest

DDomestication

Correct answer

A. Protectionism

Explanation

The correct answer is Protectionism.

3002EconomicsMedium

Among the leading causes of divorce are________?

Aincompatibility

Bonly b and c

Cinfidelity

Dpersonality differences

Correct answer

B. only b and c

Explanation

The correct answer is only b and c.

3003EconomicsMedium

The treatment of mental illness based on rewards and punishment is referred to as________?

Abehavior therapy

Bhypnotherapy

Cshock therapy

Dchemotherapy

Correct answer

A. behavior therapy

Explanation

The correct answer is behavior therapy.

3004EconomicsMedium

A prison is a________?

Atertiary socialization

Bprimary institution

Ctotal institution

Dsecondary institution

Correct answer

C. total institution

Explanation

The correct answer is total institution.

3005EconomicsMedium

Economists use the term regulatory capture to mean a situation where the private sector firms being regulated?

APersuade the regulator to operate in the industry’s interests

BPersuade the government to change the regulatory regime.

CPersuade the regulator to act in the firms interests.

DBribe the regulator.

Correct answer

A. Persuade the regulator to operate in the industry’s interests

Explanation

The correct answer is Persuade the regulator to operate in the industry’s interests.

3006EconomicsMedium

The low heating capacity of which of the types of coal reduces its value as an industrial fuel?

ABituminous coal

BLignite

CAnthracite

DPeat

Correct answer

D. Peat

Explanation

The correct answer is Peat.

3007EconomicsMedium

Evidence suggests that the price elasticity of demand for motoring is?

Ainelastic

BElastic

Cabsolutely inelastic

DUnitarily elastic

Correct answer

D. Unitarily elastic

Explanation

The correct answer is Unitarily elastic.

3008EconomicsMedium

If a maximum price is set below equilibrium there will be?

AA price increase

BA price fall

CExcess demand

DExcess supply

Correct answer

D. Excess supply

Explanation

The correct answer is Excess supply.

3009EconomicsMedium

Refer to Exhibit 6. Suppose the economy is Operating in long-run equilibrium at point E. In the long run a monetary contraction will move the economy in the direction of point?

Correct answer

D. H

Explanation

The correct answer is H.

3010EconomicsMedium

Under which of the following conditions would you prefer to be the lender?

AThe nominal rate of interest is 20 percent and the inflation rate is 25 percent

BThe nominal rate of interest is 5 percent and the inflation rate are 1 percent

CThe nominal rate of interest is 15 percent and the inflation rate is 14 percent

DThe nominal rate of interest is 12 percent and the inflation rate is 9 percent

Correct answer

B. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

Explanation

The correct answer is The nominal rate of interest is 5 percent and the inflation rate are 1 percent.

Economists use the term regulatory capture to mean a situation where the private sector firms being regulated?

APersuade the regulator to operate in the industry’s interests

BPersuade the government to change the regulatory regime.

CPersuade the regulator to act in the firms interests.

DBribe the regulator.

Correct answer

A. Persuade the regulator to operate in the industry’s interests

Explanation

The correct answer is Persuade the regulator to operate in the industry’s interests.

Under which of the following conditions would you prefer to be the lender?

AThe nominal rate of interest is 20 percent and the inflation rate is 25 percent

BThe nominal rate of interest is 5 percent and the inflation rate are 1 percent

CThe nominal rate of interest is 15 percent and the inflation rate is 14 percent

DThe nominal rate of interest is 12 percent and the inflation rate is 9 percent

Correct answer

B. The nominal rate of interest is 5 percent and the inflation rate are 1 percent

Explanation

The correct answer is The nominal rate of interest is 5 percent and the inflation rate are 1 percent.